Complaint Review: Endeavor Metals Group

Owner Paul Kaulesar defrauded customers and potential customers by misrepresenting the potential profits from leveraged precious metals contracts and failing to disclose the past performance of the precious metals contracts they offered, the Order finds.

One piece of their promotional material, for example, emphasized the profits that could purportedly be obtained through precious metals transactions, claiming that “[r]enowned precious metals analyst, [name omitted], predicts Silver to top $60 an ounce by the end of 2012.” However, Kaulesar failed to inform customers that at least 88 percent of the firm’s customers lost money on their financed precious metals investments.

The Order also imposes permanent trading and registration bans against Kaulesar and prohibits them from violating the provisions of the Commodity Exchange Act and a CFTC Regulation, as charged.